Press Release: Nestle: Nestlé reports nine-month -3-

Nestlé Health Science

-- 14.3% organic growth: 14.1% RIG; 0.1% pricing.

Sales Sales Organic Net Foreign Reported

9M-2021 9M-2020 RIG Pricing growth M&A exchange growth

Nestlé

Health CHF 3.2 CHF 2.4

Science bn bn 14.1% 0.1% 14.3% 22.4% - 2.8% 33.8%

Organic growth was 14.3%, with strong RIG of 14.1% and 0.1% pricing. Net acquisitions increased sales by 22.4%, largely related to the acquisitions of the core brands of The Bountiful Company, Vital Proteins, Zenpep and Aimmune. Foreign exchange negatively impacted sales by 2.8%. Reported sales in Nestlé Health Science increased by 33.8% to CHF 3.2 billion.

Nestlé Health Science posted double-digit organic growth, building on a strong sales development in 2020. Vitamins, minerals and supplements that support health and the immune system continued to see strong demand with broad-based market share gains across channels and markets. Growth was supported by e-commerce momentum, new product launches, geographic expansion and strong execution in the supply chain.

Consumer care posted double-digit growth, with strong contributions from Vital Proteins, Garden of Life, Persona and healthy-aging products such as Boost and Meritene. The newly-acquired core brands of The Bountiful Company, in particular Nature's Bounty and Solgar, posted strong double-digit growth. Nuun functional hydration products also grew at a strong double-digit rate.

Medical Nutrition reported mid single-digit growth, with robust demand for Compleat, a comprehensive nutritional tube-feeding formula, and pediatric care products, such as Althéra, Alfaré and Alfamino.

By geography, the Americas, EMENA and AOA all posted double-digit growth.

Business as a force for good: supporting a just transition to regenerative food systems

Nestlé is a signatory of the UN Business Ambition for 1.5degC pledge and was one of the first companies to share a detailed, time-bound climate plan in December 2020. The company is taking action to halve its emissions by 2030 and achieve net zero by 2050. Agriculture plays a critical role in achieving these climate targets as two thirds of Nestlé's greenhouse gas emissions stem from the production of food ingredients. In September 2021, Nestlé announced that it will support and accelerate the transition to regenerative food systems -- one that aims to protect and restore the environment, improve the livelihoods of farmers and enhance the well-being of farming communities.

Together with external partners, from farming communities, academia, civil societies and government, Nestlé is piloting trials with more than 50 reference farms globally. The learnings from these trials will be adapted locally and scaled up.

Regeneration is fundamental to creating more resilient food systems. Regenerative farming practices aim to restore soil health, renew water cycles, increase biodiversity, and integrate livestock. These practices can also sequester carbon, which will contribute to achieving Nestlé's ambitious climate targets.

The transition to regenerative food systems will only succeed if it is socially and economically viable for all, which is why Nestlé is putting farmers at the center of its efforts. The company will offer investment support to mitigate initial risks and pay premiums for raw materials produced using regenerative agriculture. This will reward farmers not only for the quantity and quality of ingredients, but also for the environmental benefits.

For technical assistance, Nestlé's vast network of experts and agronomists will deploy state-of-the art science to help farmers adopt regenerative practices. The company will also offer agricultural training and help farmers exchange information and best practices that can be adapted locally.

Nestlé expects to invest CHF 1.2 billion over the next five years to support the adoption of regenerative farming practices by its network of more than 500 000 farmers and 150 000 suppliers.

Outlook

Full-year guidance for 2021 updated: we expect full-year organic sales growth between 6% and 7%. The underlying trading operating profit margin is expected around 17.5%, reflecting initial time delays between input cost inflation and pricing, as well as the one-off integration costs related to the acquisition of The Bountiful Company's core brands. Beyond 2021, our mid-term outlook for continued moderate margin improvement remains unchanged. Underlying earnings per share in constant currency and capital efficiency are expected to increase this year.

Annex

Nine-month sales overview by operating segment

Nestlé

Total Zone Zone Zone Health Other

Group AMS EMENA AOA Nespresso Science Businesses

Sales

9M-2021

(CHF m) 63 294 24 589 15 492 15 172 4 654 3 237 150

Sales

9M-2020

(CHF

m)* 61 912 24 991 14 952 15 251 4 180 2 421 117

Real

internal

growth

RIG 6.0% 5.2% 6.4% 3.9% 10.4% 14.1% 25.5%

Pricing 1.6% 3.2% 0.8% 0.2% 0.6% 0.1% 2.9%

Organic

growth 7.6% 8.4% 7.2% 4.1% 11.0% 14.3% 28.5%

Net M&A - 3.3% - 6.0% - 2.8% - 4.1% - 0.1% 22.4% 0.0%

Foreign

exchange - 2.0% - 3.9% - 0.7% - 0.7% 0.4% - 2.8% - 2.4%

Reported

sales

growth 2.2% - 1.5% 3.6% - 0.6% 11.3% 33.8% 26.0%

Nine-month sales overview by product

Milk Prepared

Powdered products Nutrition dishes &

Total & liquid & ice & Health cooking

Group beverages Water cream Science aids Confec-tionery PetCare

Sales

9M-2021

(CHF m) 63 294 17 499 3 230 7 837 9 363 8 873 5 132 11 360

Sales

9M-2020

(CHF m) 61 912 16 219 5 020 8 114 9 004 8 460 4 713 10 382

Real

internal

growth

(RIG) 6.0% 8.6% 1.9% 3.2% 0.1% 5.9% 7.9% 9.9%

Pricing 1.6% 0.7% 2.4% 3.2% 0.6% 1.6% 1.5% 2.3%

Organic

growth 7.6% 9.3% 4.3% 6.4% 0.8% 7.5% 9.5% 12.1%

* 2020 figures restated following the disclosure of Nestlé Health Science and Nespresso as standalone segments from 2021 onwards (previously combined and presented in Other Businesses).

Contacts:

Media:

Christoph Meier Tel.: +41 21 924 2200

mediarelations@nestle.com https://www.globenewswire.com/Tracker?data=rELwCH9jw3HlcZb3xS0IQd15z6JurZ-UGdPPq990tDwPcqyN0mkZe-DjocOXnS3Zp_AYd6Qhdrg4EpA1NvHopeWekfPf5cdg-pYGjIKf4Axf4NSeusjLF5_zymfTrn5q

Investors:

Luca Borlini Tel.: +41 21 924 3509

ir@nestle.com https://www.globenewswire.com/Tracker?data=JDBkPyJxVQtZSv0YDZ9eKcRUmcPNUt7y3-hXh4-UFnFutWScdzOunK5ZogJhsTxI7KXTGuarkDgS1ynK1CBFMw==

(END) Dow Jones Newswires

October 20, 2021 01:15 ET (05:15 GMT)